Banks sanction Rs 15 lakh crore under Mudra Yojana in past 6 years

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The finance ministry said on Wednesday that banks and financial institutions have sanctioned Rs 14.96 lakh crore to more than 28.68 crore beneficiaries over the past six years.

Pradhan Mantri MUDRA Yojana (PMMY) was launched by Prime Minister Narendra Modi on April 8, 2015 to promote entrepreneurship.

The Ministry of Finance is committed to providing financial inclusion and support to marginalized and heretofore socio-economically neglected classes.

“The financial needs of all stakeholders, from budding entrepreneurs to hard-working farmers, have also been met through various initiatives. A key initiative in this direction is Pradhan Mantri MUDRA Yojana (PMMY), which has given wings to the dreams and aspirations of millions of people, as well as a sense of self-worth and independence, ” said the Ministry of Finance in a press release.

He further stated that PMMY loans of 4.20 crore were sanctioned in 2020-21, and 2.66 crore lakh Rs were allocated in 2020-21 to March 19, 2021.

The average loan amount is around 52,000 rupees, he said.

Under the PMMY, unsecured loans of up to Rs 10 Lakh are granted by member lending institutions (MLI) namely programmed commercial banks, regional rural banks (RRB), small financing banks (SFB ), non-bank financial corporations (NBFC), microfinance. Institutions (MFIs) etc.

Loans are granted for income-generating activities in the manufacturing, trade and service sectors and for activities related to agriculture.

The program was started to encourage small businesses, and banks were asked to provide unsecured loans up to Rs 10 lakh under three categories – Shishu (up to Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh) and Tarun (Rs 10 lakh).

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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